The Xero Ltd (ASX: XRO) share price has seen a rough performance over the past year. It’s down around 55% over the past 12 months, as the chart below shows.

That decline has occurred despite the company’s operating revenue, net profit and cash flow continuing to rise. The decline in recent times can probably be attributed to worries about AI, but the decline last year may have been impacted by concerns about the US Melio acquisition.

Xero recently held a Melio and AI product demonstration which impressed the broker UBS and it thinks the ASX tech share has significant growth potential from here.

UBS’ optimistic view